The combination of a middling Process Pillar rating and a Low People Pillar rating limit  Global X Cloud Computing ETF to a Morningstar Medalist Rating of Neutral.  The portfolio maintains a cost advantage over competitors, priced within the second-cheapest fee quintile among peers.  

 The team managing the passive strategy earns a Low People Pillar. The strategy gets an Average Process Pillar rating.  High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. The strategy's parent organization earns the firm an Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Analyst Rating

Five9

Twilio

Wix.com

Workday

Zscaler

DigitalOcean Holdings

Qualys

salesforce.com

Shopify

Procore Technologies

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Global X Cloud Computing ETF earns an Average Process Pillar rating. The most meaningful contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. 

The investment strategy as stated in the fund's prospectus is:  The investment seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, and of the Indxx Global Cloud Computing Index.  The fund invests at least 80% of its total assets in the securities of the underlying index and in American Depositary Receipts ("ADRs") and Global Depositary Receipts ("GDRs") based on the securities in the underlying index. The underlying index is designed to provide exposure to exchange-listed companies that are positioned to benefit from the increased adoption of cloud computing technology. It is non-diversified. 

 The portfolio is overweight in real estate and communication services relative to the category average by 4.7 and 3.4 percentage points, respectively. The sectors with low exposure compared to category peers are industrials and financial services, underweight the average by 2.7 and 2.5 percentage points of assets, respectively. The portfolio has 37 holdings and is similarly diversified as peers, with 47.4% of portfolio assets concentrated within the top 10 holdings. And in closing, in terms of portfolio turnover, this fund trades less regularly than the typical peer in its category, which may result in a lower cost to investors.

Average

Process

Global X’s team earns a Low People Pillar rating. The main driver of the rating is the turnover of management across its parent firm. The firm's asset-weighted manager tenure of five years suggests it could do more to retain portfolio managers. The parent firm's five-year success ratio of 34% also holds the team back. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup. The experience of the management team, which averages four years at this fund, limits the rating as well.

People

Mirae Asset Global Investments is a Korean asset manager and a key player in the Asian financial market. It is a wholly owned subsidiary of Mirae Asset Financial Group, founded by Hyeon Joo Park. Park’s leadership and entrepreneurial spirit have been the driving force behind the global rise of Mirae, and he holds a majority stake in the business. 
Mirae Asset has grown significantly over the years (USD 198 billion as of December 2022) across a diversified platform, of which about 60% of assets are managed in South Korea. We believe that Mirae’s core mutual fund business in the Asia-Pac region is relatively strong. It has a collaborative structure, a strong and large investment team, low manager turnover, competitive fees, and a disciplined approach to product-development pointing toward better stewardship practices relative to peers in these markets. However, this is in stark contrast to its exchange-traded fund business, which accounts for 41% of the total assets. 
The firm’s ETF lineup focuses largely on high-risk thematic strategies that seem gimmicky, emphasizing short-term asset-gathering. The firm appears to leverage trending topics such as robotics and artificial intelligence, virtual reality and gaming, and cloud computing. There’s a notable concern regarding the potential liquidation of these funds since they seem to be designed around investment fads. Furthermore, these products are often expensive, especially compared with broadly diversified index funds and ETFs. Unsurprisingly, Mirae's reflexive product-development strategy has led to an increase in fund closures.
Our experience engaging with the MAGI team to gather critical information for the parent assessment has not been as positive. It hasn’t been as transparent in its disclosures, and unlike its peers, its responsiveness has been inadequate. We prefer firms with a more transparent corporate culture. Overall, these actions hold us back, and the firm retains its Parent Pillar rating of Average.

Parent

Global X Cloud Computing ETF

CLOU provides exposure to a market-cap weighted global equity index of companies involved in the cloud computing industry.

Advanced Micro Devices

Proshares Big Data Refiners ETF

First Trust Nasdaq Semiconductor ETF

Intel

iShares U.S. Aerospace & Defense ETF

Microsoft

NVIDIA

Vanguard Information Technology ETF

The S&P 500 and the Nasdaq hit highest level since August. The Nasdaq 100 hits its highest in about two years after November spike.

Missed the Rally? Buy 5 Top-Ranked ETFs

iShares MSCI Emerging Markets ETF

Global X FinTech ETF

iShares Russell 2000 ETF

Vanguard Real Estate ETF

Investing areas like small-caps, technology, fintech, real estate and emerging markets gained materially on softer U.S. jobs data as it strengthened chances of a dovish Fed, going forward.

5 Winning ETF Areas on Soft Jobs Data

If you're interested in broad exposure to the Technology - Cloud Computing segment of the equity market, look no further than the Global X Cloud Computing ETF (CLOU), a passively managed exchange traded fund launched on 04/12/2019.

Should You Invest in the Global X Cloud Computing ETF (CLOU)?

Defiance Hotel Airline and Cruise ETF

Proshares Online Retail ETF

Invesco S&P 500 Enhanced Value ETF

Consumer Discretionary Select Sector SPDR Fund

SPDR S&P Retail ETF

Ironically, the time of ghouls and ghosts often turns out to be a time of angels for Wall Street. This is thanks to the Halloween Effect, which normally brightens the financial markets.

Will These Downtrodden ETFs Enjoy Halloween Effect?

Global X Cloud Computing ETF invests in companies benefiting from cloud computing technology. Top holdings include Zscaler, Qualys, and Dropbox, with strong revenue growth and stock performance.

CLOU ETF: Betting On Cloud Growth

Global X Robotics & Artificial Intelligence ETF

iShares MSCI Brazil ETF

iShares U.S. Home Construction ETF

US Global Jets ETF

AdvisorShares Pure US Cannabis ETF

Direxion Daily NVDA Bear 1X Shares

Direxion Daily NVDA Bull 1.5X Shares

Invesco QQQ

Invesco Nasdaq 100 ETF

United States Natural Gas Fund LP

Global X Uranium ETF

Sprott Uranium Miners ETF

SPDR S&P Aerospace & Defense ETF

Technology Select Sector SPDR Fund

Hi! In this week's ETF Wrap, you'll see how investor demand for tech and artificial-intelligence ETFs this year pales in comparison with their strong performance.

Tech, AI ETFs are soaring, but flows show investors holding back

Vanguard S&P Mid-Cap 400 Growth ETF

Invesco NASDAQ Internet ETF

Vanguard Consumer Discretionary ETF

Vident Core US Equity Fund

While September's history might suggest a downtrend for stocks, several upbeat factors challenge the convention this year.

5 Reasons Why September May Give ETF Investors a Sweet Surprise

Global X Artificial Intelligence & Technology ETF

Qraft AI-Enhanced US Large Cap Momentum ETF

Goldman Sachs Future Consumer Equity ETF

Goldman Sachs Future Health Care Equity ETF

The Goldman Sachs Future Tech Leaders Equity ETF

iShares Robotics & Artificial Intelligence Multisector ETF

iShares PHLX Semiconductor ETF

Last week, the VettaFi AI Symposium was one of the more popular places to be in the days before Labor Day. We had more than 1,200 people registered with over 650 live attendees (many more of you will catch the replay).

AI Is Much More Than Hype

August was a downbeat month for Wall Street mainly due to rising rate worries. Still some analysts are of the opinion that this the time to buy the dip in U.S. stocks.

Should You Buy the Dip in U.S. Stocks? Top ETFs in Focus

Artificial intelligence is one of the top investment themes this year and is the new megatrend likely to last for at least the next decade.

AI an “Incredibly Powerful Theme” of Next Decade: How to Invest

SPDR S&P Transportation ETF

The U.S. real wages turned positive for the first time since March 2021. This should boost spending in these sectors.

3 Sector ETFs to Play on Positive Real Wages

Cloud stocks have underperformed the NASDAQ year-to-date due to the rise of the AI-everywhere theme, and market participants exhibit exuberance, disregarding valuations. The market is fueled by speculation rather than fundamentals, with most cloud names trading at expensive valuations and offering little margin of safety. With the 10-year US Treasury Bond yield close to 4% and an inverted yield curve, it is doubtful that this marks the beginning of a new bull market.

CLOU: Climbing The Clouds Before A Reality Check

Invesco Global Clean Energy Portfolio

Invesco High Yield Equity Dividend Achievers ETF

Invesco S&P SmallCap Energy ETF

Low-priced stocks could be attractive as these will enable them to buy more shares instead of just a handful of higher-priced shares for the same amount. These stocks often have the potential for significant percentage gains.

4 Top-Ranked ETFs Under $20 for Solid Gains

Direxion Daily Cloud Computing Bull 2X Shares

Fidelity Cloud Computing ETF

ProShares Ultra Nasdaq Cloud Computing ETF

First Trust Cloud Computing ETF

WisdomTree Cloud Computing Fund

Takeaways from earnings reports: AWS, Azure, GCP. Positioning for 2H - easy comps and AI tailwinds.

Is The Sun Coming Out For Cloud Stocks In H2 '23?

Robots and artificial intelligence are increasingly gaining precedence in our daily life. Microsoft is poised to take advantage of the boom.

ETFs to Gain on Microsoft's $13-Billion Bet on OpenAI

ARK Web x.0 ETF

McKinsey estimates that the cloud adoption by Forbes Global 2000 companies could generate $3 trillion in EBITDA by 2030. That's a big reason investors should consider the best cloud computing ETFs to buy.

The 3 Best Cloud Computing ETFs to Buy for Long-Term Growth

Simplify Volt Cloud and Cybersecurity Disruption ETF

Fortune 500 decision makers expect a dramatic slowdown in IT spend. Interestingly, cloud spending is expected to fare worse than the average IT spending.

Why This Cloud Slowdown Is Temporary And Why This Presents An Opportunity

With the Fed looking to slow and eventually pause rate hikes in 2023, beaten-down tech stocks are positioned for a recovery. Global X Cloud Computing ETF is a solid choice for diversified exposure to SaaS and cloud infrastructure stocks.

CLOU: A Solid Cloud Computing Recovery ETF

Enterprise software growth slowed to single digits in 2022 as buyers responded to the slowing economy. Yet, double-digit growth is expected to make a comeback in 2023.

Cloud Computing Update: Zoom Out To Focus On The Big Picture

Adobe

Datadog

Fastly

The unexpected coronavirus outbreak in 2020 had a crippling effect on most industries worldwide. However, digitization grew at a breathtaking pace, with businesses rapidly changing how they operate.

7 Cloud Stocks That Will Lift Your Portfolio Sky High

WisdomTree U.S. SmallCap Dividend Fund

VanEck Vectors Semiconductor ETF

Vanguard Financials ETF

Wall Street has suffered a disastrous 2022. While this has resulted in many losers, many of them could emerge as winners next year.

4 ETFs You'll Regret Not Buying at Their Current Price Levels

ProShares Ultra Nasdaq Cybersecurity

Amazon's cloud unit plans to recruit employees next year.

Time for Cloud ETFs Following Amazon's Recent Hiring Move?

The Nasdaq 100 is down over 30% for the year, but cloud computing investment continues, highlighting the growth of the sub-industry despite the overall market weakness. More and more businesses are looking to utilize the cloud as part of their core operations.

Despite Tech Weakness, Cloud Computing Investment Continues

Global X Cybersecurity ETF

As 2022 draws to a close, investors are already looking at ways to minimize their tax burden for what's been a challenging investment environment this year.

Exercise Tax Loss Harvesting With High-Growth Thematic ETFs

Global X MSCI China Information Technology ETF

The recent weakness in tech stocks isn't stopping the world's largest players in the space from investing in cloud computing. Chinese internet giant Alibaba is ready to pour $1 billion to bolster its own cloud computing technology.

News for Global X Cloud Computing ETF ETF (CLOU)